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it's a jobs friday! classified information on which sectors are hiring. in today's cover story, pickup in the economy: how one automaker is shifting into hiring mode. plus, hidden houses: the secret tactic to keep some dream homes off the market. and market psychology: how trades of the past haunt the present. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning on this jobs friday. it's may 3rd. i'm angela miles. in today's first look: low expectations for today's unemployment numbers. earlier this week the adp number was off the mark, with just 119,000 jobs added. today traders expect
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the labor department will report 155,000 jobs were added in april and the unemployment rate will remain at 7.6%. stocks rallied - hard - into the jobs number, with the dow up triple digits. gold edged up 20 dollars, and oil was a standout, adding on $3.01. in earnings after-hours, aig missed on revenue, but earnings were better than anticipated. and linkedin topped on earnings and revenue, but the outlook was light. and there's a new mortgage rate record: the 15-year fixed fell to 2.56%. the 30-year is just a stone's throw from setting a record at 3.35%. tim mulholland of china america capital joins us now. tim, does this market have a case of the jobs jitters? - i think so. but again, i think it's confused on exactly what
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jitters they are. if the number continues to be on the weak side, or even as expected, or slightly lower, i don't think that is a bad thing for the market, because it keeps the fed in play. if we were to get a number that is rip-roaring strong, i think that the market might initially react, and that it would come to the realization that, hey, the fed may be exiting, or have to exit, a little bit sooner, and i think that would be the bigger risk to the market, and i think that's probably the counterintuitive flow that you may see from a much stronger respective number. so, i don't know what the real jitters are about. but i think as expected, even slightly lower, i don't think it is going to prevent or stop what is the impetus behind this market right now. - the ecb cut rates to .5%. that is a low. is that what sparked the rally in the market yesterday? - certainly. i think even though it was widely expected, i think that the fact that they did lower rates and signal that they could do more did certainly support the market. and i think that was the biggest factor in the market rally, that the ecb is really stepping on at least cutting rates, which is
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providing more support to the global easing we are seeing by central banks. - and here comes the softball question: what are the trends that are a trader's friend in this market? - the trend is the fed continuing their pace of bond buying. i think that's the real trend. the dips have been short and shallow. we have a 3% correction that feels like a 20% or 10% correction, so the dips are short, the market is trading. what the fed has created has also, i think, elevated high-dividend consumer staple stocks. people are really paying a premium for those and treating them like bonds. so i think what the trend is, as long as the fed is in this mode, they are your friend. - just another trader that won't fight the tape. good to have you on the show this morning, tim. - sure. a sign the economy is picking up: the sale of pick-up trucks. in our cover story, ford says demand is growing so fast, the automaker announced it will hire 900 additional employees at its truck plant near kansas city. the new hires will make about $16 an hour - a little less than half of the workers currently at ford's plant near kansas city. "anytime. more of them." the hiring comes as ford announced sales of 60,000 f- 150s in april, a 24.4% increase from the same month last year, and an improvement seen by other truck makers: general motors' trucks were up 23.6%, chrysler's
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ram division up 49% from a year ago. "the skilled trades are buying trucks because housing is coming back." in addition to the 900 who'll be on the job by september, ford is bringing back to the kansas city plant 1100 furloughed employees to build its new van, the transit, at $28 an hour. "these are excellent jobs. this enables the middle class to buy homes and send their kids to college." "we are now 75% of the way toward hiring 12,000 new employees nationwide by 2015." since 2011, ford has put a
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billion dollars into the facility near kansas city. in january, general motors announced it would invest $600 million to improve its fairfax assembly plant in kansas city, kansas. in a related note, alcoa, the largest aluminum producer in the u.s., announced that it will spend $275 million to expand its plant in tennessee to meet increasing demand from the auto industry. analysts predict 4% more aluminum will be used this year as automakers continue their efforts to make lighter vehicles and improve mileage. the automotive industry is not the only sector where the jobs are: "we are seeing growth in areas like healthcare, professional services... hospitality has been relatively strong over the year at restaurants and the like. also, housing is starting to pick up, so construction is gaining jobs. that's been an
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area where we haven't seen much growth over the last few years." that was john challenger of outplacement services challenger gray and christmas, who adds the retail industry is slow to hire. he expects the government and military-related companies will continue to cut positions into the end of the year. china's workforce is in a major shift change. as the economy expands, rising wages are pushing chinese manufacturing companies to head to countries such as vietnam and indonesia. analysts say this year, china's service sector will account for more than its industrial sector. closer to home, president obama is turning to one of his fundraising friends to become the next commerce secretary. the president is nominating penny pritzker. her personal fortune is esimated at $1.8 billion. pritzker sits on the board of hyatt hotels, which was founded by her family. they also owned a bank that failed and a credit reporting agency. the president commends her for building companies from the ground up.
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the former chair of the the fdic says congress has yet to fully step up and fix the problem of "too big to fail" - big banks believing they can take risks and then expect the government to bail them out. "we need better constraints on the amount of leverage big banks have to have to fund their loans and investments." sheila bair says one answer is a bi-partisan bill from senators sherrod brown and david vitter requiring banks with more than a half-trillion dollars in assets, such as jp morgan chase, citigroup, b of a and others, to hold capital reserves of 15% - a much higher standard than exists today. a hedge fund founder is using tough talk to keep employees in line. cnbc reports sac capital founder steve cohen told investors the hedge fund would impose compensation clawbacks on employees who break rules with stock trades. cohen says
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it's to "deter conduct that threatens the integrity of the firm." sac has been the subject of insider trading investigations. intel's new leader may switch things up a bit. company veteran brian krzanich takes on the ceo role in two weeks, after paul otellini retires. krzanich is expected to steer the company in a new direction. analysts say he may turn over some production facilities to other chip-makers, as the industry switches from pcs to tablets and mobile phones. intel is first in the pc market, but has been slower to enter the mobile world. warren buffett has some encouraging words for working women. in an essay out this week, mr. buffett says that women's success in the workplace is critical for the prosperity of the country. meanwhile, the famous billionaire also launched his very own twitter page. we're still waiting for our retweet. i-n-g sold a lion's share of its stock in its ipo. i-n-g
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raised $1.3 billion, lower than expected, but still the second largest ipo in the u.s. this year, as it winds down u.s. operations. it priced below- range at $19.50. i-n-g stock, trading under symbol "voya," rallied at the open and traded flat during the day, closing around $20. general motors' earnings lost steam in the first quarter. earnings fell nearly 14% on weaker sales in north america and europe, but still beat estimates. kellogg's first- quarter earnings fell 11% on slow sales in its snack business. jim beam profits were up 45% on bourbon sales, especially as consumers "trade up" to premium liquor. as the housing market makes a comeback, "secret sales" are also picking up. so-called "pocket listings" help brokers keep a home under wraps, showing it only to clients who are qualified and quick to buy. the process is typically used by wealthy buyers. however, due to rising competition, brokers are using pocket listings to beat out other buyers.
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"now it's expanded, because you also have investors that are very interested, and they want those properties they can rehab, so it's now gone from just your average buyer to everybody who's in the market interested in making a buy. they're looking for that edge, and definitly pocket listings do help them." that was mabel guzman of at properties, who says it helps buyers who have specific price points and requirements in mind. costs are adding up from extreme weather around the nation. on the west coast, 700 firefighters are on the scene of wildfires that closed a secition of the pacific coast highway. the massive snow storm that covered the rockies and brought record snow to the plains now threatens flooding in the midwest and south into saturday, where homeowners are already water-logged. the cost of feeding a family is on the rise. the ag department estimates feeding a family of four can cost between $146 to $289 a week. the range depends on the level of a healthy diet. a so-called "moderate cost healthy plan" is up 38% from 2003. the numbers account for
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all at-home meals and snacks, and not dining out. it's off to the races this weekend for the kentucky derby. usa today estimates profits at churchill downs are up $15 million in the past 5 years. no surprise there, considering prime seats overlooking the finish lines are nearly $9,000. to mark the occasion, bourbon producer woodford reserve is selling an extrodinary $1,000 mint julep for this year's run for the roses. still to come, a new hot stock is rolling into town. it's being called the "new apple." that's later on in traders unplugged. but first, how your parents can benefit from your grasp of
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financial matters. that's next with bill moller.
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parents need to talk with their children about saving, investing, debt management - "the talk," as it's called. but children, grown children, need to talk with their parents about pretty much the same
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things. let's talk with ted beck. he is the president and ceo of the national endowment for financial education. all right, ted, aging parents and their children and their finances, what should that talk be about? - first of all, make sure that you have a need to have the talk. so, if you see things like parents forgetting to pay bills, maybe paying bills twice, having trouble with basic math, it's probably important to sit down and have that discussion. and a couple of things you really want to do is emphasize that this discussion is meant to help them develop a plan that really will work for them going forward. we just finished a national poll, and 86% of the people we surveyed told us they really expected and hoped that the family would step in and help them and trusted the family. on the other hand, 7 out of 10 told us there were family dynamics that could get in the way. - so it's important, it sounds like, to sort of lay the
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groundwork, not just announce, "we're going to have the talk," but be sensitive to some of the needs that they have. - absolutely. there could be some resistance, some fear of loss of financial independence, or maybe they have done something that they are embarrassed by that they don't want the family to know about. so saying "we are going to have this discussion," maybe even having a discussion with siblings and family members beforehand, and don't spring it on people. and when you sit down and have that discussion, a few things you might want to accomplish: one, have your parents identify who in the family they want to have provide that financial support going forward. second, making a good inventory of where your resources and assets are. a lot of times if you've moved around, people don't know where things are. and then, take care of the legal side. make sure you have a current will that outlines your wishes, and also,
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if you are asking for help, have a financial power of attorney so your family member can transact on your behalf. - what kind of dangers might occur if you don't have this kind of a talk? - you can start to get a lot of confusion within the family about who is making decisions, who has influence. you could potentially have a higher vulnerability to scams because nobody is looking at their accounts regularly. when you have that family member looking into things like frequently checking their accounts online, both bank accounts and credit cards, to make sure nothing out of the ordinary is happening. do an annual credit check in their name to make sure there has been no identity theft. and really keep the family informed about what actions you are taking. those are all steps that can really avoid some problems going forward. - very sensible. ted beck, thanks for talking with us. - i appreciate it. thank you, bill. still ahead, open house: find out what traders look for when they are on the hunt for a housing stock. that's next.
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the original band is back
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together. joining us from the floor of cme group, alan knuckman and jared levy. good to have you guys on the show. let's take off with topic number one, bite of apple: apple is issuing bonds. is this a smart move? - it's a smart move for apple. i mean, they are keeping their cash, they are borrowing money, they have got a very high rating, and they have got the interest deduction on the interest that they have to pay out on it. - it would have been nice if they would have been able to bring their money back from overseas without having to pay extra taxes. now, that said, i agree with alan. i would be borrowing money here at apple. 0.6% for 3 years? i mean, listen, it's pretty much free. the bottom line is, can they innovate? and right now, i am a little concerned that apple's, a) their new iphone, and b) their ios 7, may be delayed and may cause more problems with the stock. - now, a 30-year interest product on apple - are they going to be around in 30 years, or are they going to be sony? - so are you buying it or are you selling it? - i would stay away from it,
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but i like the stock. we have come to $440, which is the breakout area for the last three months. the halfway point of this fall is $550. - topic number two: tesla drive. is tesla the new apple? - you know, nikola tesla unfortunately died destitute and bankrupt in a hotel room in the new yorker hotel- - what is this, the history channel? - i'm just saying, the point is, tesla i think is way ahead of itself. and this guy, how can he even compare a company like tesla to google? you are selling a specialized product- - apple. - and google. you said it could be both. the bottom line is, i think tesla has got a long road. if i was going to buy anything, i would definitely be buying google here. - it is up 36% in the last month, so it is a little too rich for me. it was trading between $20 and $40, so that target is $60. we are getting close to that, we are about $54 or so, so we still have some more upside. maybe selling some puts spreads, possibly. i'm still bullish, but the volatility is very high, so there is a lot of risk here. - here's what i think as a quick alternative: take a look at chesapeake energy. completely unrelated, but chesapeake is actually - listen - they're building infrastructure for natural gas, another alternative fuel which i think is going to trump this electric car business. - these are electric. ok. ok.
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- topic number three: real? estate? a broker is having employees tattoo the company logo. are you that committed to the housing recovery? - housing is a symptom, not a driver of the economy. i had to write that down. but looking at housing, housing is up 150%. way too rich for me. i like the materials sector. the materials that to build houses with, i think that has got some more upside, and it has been trading between $30 and $40 for the last three years. - alan is a little sensitive here because he still has that rainbow brite tattoo from when he was younger. but the bottom line is, actually, with housing, i think you need to look at some of the big housing units, the multifamilies - post properties, camden. i think actually that is that area of housing- - they are all up 100%! you're going to go in now?! - they still have room to go. i know developers are still buying like mad- - i'm bullish, but- - -and they're hungry for it. - time for the bonus round question: derby day! which one is the phony pony? charming kitten, overanalyze, falling sky, frac daddy, or firstbiztrot? - that's a lot of choices. - firstbiz? - overanalyze.
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- firstbiztrot, and it's time for us to trot on to the break. thanks guys. - thanks.
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we're moving on to chart talk now with trader dan deming of stutland equities. dan, what market signals are you seeing? - well angie, i tell you right now, you look at the comeback that the market had yesterday after the initial kind of sell- in-may mentality that kicked in a little bit on may 1st. we saw the market weakness, and we did see some hedging going on as far as the vix is concerned. we saw a big buyer of the may 16 calls rolling into may 1st. but ultimately yesterday we saw the market rally and go to new highs as far as the spx. just slightly, but still new highs. nasdaq breaking out now to a 12.5-ear high after yesterday's move. rolling into unemployment, we are still seeing some concerns out there, but ultimately right now, the fact that we were able to recoup the initial drop on may 1st bodes pretty well, i think, at least rolling into unemployment. - i love this market, i love
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what it's doing for people's portfolios, but i am concerned here, because i find myself saying things like we did back in the 2000's and 90's: "how you make money in this market? just get up in the morning." that's not a good thing, right? - well, in a perfect world it is a good thing. - like i said, i love it. - yeah, exactly. but angie, you are right. and i mean, there are concerns out there, but ultimately, we have still seen the profits come in pretty well. 68%, i think, of the s&p- reporting companies came in over expectations. yesterday we saw aig come in pretty strong, facebook did well yesterday. so you are still seeing the corporate structure fairing pretty well throughout this. what is pretty much an uneven economic environment. now, i think it will take some pretty significant cues off of unemployment as we kind of see and how the day unfolds, but right now, you would have to say that that snapback after the initial sell-off on may 1st bodes pretty well, i think, short-term. - i guess for now it's "enjoy the ride." - right. - good to have you on the show, dan. thank you. - thanks angie. hard to believe the week is already wraping up. coming up monday on the show, the best states for retirement - and these are not places that normally come to mind, so make sure and join us. from all of us at first
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business, have a great weekend! >> announcer: the following is a paid advertisement for cold plasma sub-d by perricone m.d. how old does your neck make you look? would you like to take years off your appearance and help remove some of the signs of aging on your neck for a look that is firmer, tighter and more youthful? well, now you can. introducing dr. perricone's cold plasma sub-d. sub-d is specifically formulated for the area called the submandibular. often neglected, the skin in this area has unique needs, and cold plasma sub-d helps tackle the most common signs of aging

First Business
KICU May 3, 2013 4:00am-4:31am PDT

Gone in 60 Seconds News/Business. Angie Miles. (2013) Crafting the perfect elevator pitch. New. (CC) (Stereo)

TOPIC FREQUENCY Kansas City 5, Apple 4, Google 2, Aig 2, Tim 2, Dan 2, Angie 2, Ted Beck 2, Ford 2, China 2, Obama 1, Mr. Buffett 1, Nikola Tesla 1, Sheila Bair 1, Tim Mulholland 1, Kellogg 1, Jp Morgan Chase 1, Jared Levy 1, Bill Moller 1, Dan Deming 1
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Duration 00:31:00
Rating G
Scanned in Richmond, CA, USA
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